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    XLSX

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    Bhargav D.S.
    The Woodworks Company produces custom wood furniture including bookshelves made from cherry or oak. They want to build a spreadsheet model to project how rising wood and labor costs will increase the costs of manufacturing bookshelves over the next few years. The model will allow the company to experiment with different growth rate scenarios and see the numeric and graphical results.

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    XLSX

    Uploaded by

    Bhargav D.S.
    54 views3 pages
    The Woodworks Company produces custom wood furniture including bookshelves made from cherry or oak. They want to build a spreadsheet model to project how rising wood and labor costs will increase the costs of manufacturing bookshelves over the next few years. The model will allow the company to experiment with different growth rate scenarios and see the numeric and graphical results.

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    The Woodworks Company produces custom wood furniture including bookshelves made from cherry or oak. They want to build a spreadsheet model to project how rising wood and labor costs will increase the costs of manufacturing bookshelves over the next few years. The model will allow the company to experiment with different growth rate scenarios and see the numeric and graphical results.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    54 views3 pages

    XLSX

    Uploaded by

    Bhargav D.S.
    The Woodworks Company produces custom wood furniture including bookshelves made from cherry or oak. They want to build a spreadsheet model to project how rising wood and labor costs will increase the costs of manufacturing bookshelves over the next few years. The model will allow the company to experiment with different growth rate scenarios and see the numeric and graphical results.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    You are on page 1of 3

    The Woodworks Company produces a variety of custom-designed wood furniture for its custome

    One favorite item is a bookshelf, made from either cherry or oak. The company knows that wood
    and labor costs are likely to increase in the future. The table below shows the number of board-f
    labor hours required for a bookshelf, the current costs per board-foot and labor hour, and the
    anticipated annual increases in these costs. Build a spreadsheet model that enables the compan
    experiment with the growth rates in wood and labor costs so that a manager can see, both nume
    and graphically, how the costs of the bookshelves vary in the next few years.

    Business Objective: To build a model that allows Woodworks to see how its costs of manufactur
    bookshelves increase in the future and to allow the company to answer what-if questions with th
    model.

    Excel Objectives: To learn good spreadsheet practices, to enable copying formulas with the care
    of relative and absolute addresses, and to create line charts from multiple series of data.

    Resource Cherry Oak Labor


    Resource 30 30 16
    Current Cost $ 5.50 $ 4.30 $ 18.50
    Annual Increase 2.4% 1.7% 1.5%
    niture for its customers.
    any knows that wood prices
    he number of board-feet and
    abor hour, and the
    enables the company to
    r can see, both numerically
    s.

    costs of manufacturing
    at-if questions with this

    ormulas with the careful use


    eries of data.
    A B C D E F G H I J K L M N O
    1 Projecting bookshelf costs at Woodworks
    2
    3 Inputs
    4 Requirements per bookshelf Cherry Oak
    5 Board-feet required 30 30
    Projected Bookshelf Costs
    6 Labor hours required 16 16
    7
    $550.00
    8 Costs of wood Cherry Oak
    9 Current cost per board-foot $5.50 $4.30
    10 Projected annual increase 2.4% 1.7%

    Total cost
    $500.00
    11
    12 Cost of labor
    13 Current cost per labor hour $18.50 $450.00
    14 Projected annual increase 1.5% Cherr
    y
    15 Oak
    16 Projected costs $400.00
    17 Cost per board-foot Cost per hour Cost per bookshelf
    18 Years from now Cherry Oak Labor Cherry Oak
    19 0 $5.50 $4.30 $18.50 $461.00 $425.00 $350.00
    20 1 $5.63 $4.37 $18.78 $469.40 $431.63
    21 2 $5.77 $4.45 $19.06 $477.96 $438.37
    22 3 $5.91 $4.52 $19.35 $486.69 $445.21 $300.00
    23 4 $6.05 $4.60 $19.64 $495.58 $452.16 0 1 2 3 4 5 6
    24 5 $6.19 $4.68 $19.93 $504.65 $459.22 Years from now
    25 6 $6.34 $4.76 $20.23 $513.89 $466.39

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